How much must I reinvest?

[Joe Anderson]

I'm selling an investment property for $915,000, commission is $35,000. My original purchase price was $550,000, and I've depreciated about $50,000. I financed it 100%, and have been paying interest only, so I still owe $550,000.

In my original reading up on 1031s, it seemed as though I could just do a 1031, buying a replacement property for at least my realized gain (about $380,000) and avoid any income taxation on the sale.

But after more reading, that doesn't seem to be the case? I would have to buy a replacement property with at least $550,000 of debt and at least $380,000 of equity? Is that right? Just wanted an understanding of this before I meet with a 1031 expert.

Thanks.